TEC International: Canadian CEOs' Confidence in Economy Below Confidence Level of This Time Last Year; CEOs Anticipate Revenue and Employment Growth for the Next 12 Months

TEC International: Canadian CEOs' Confidence in Economy Below Confidence Level of This Time Last Year; CEOs Anticipate Revenue and Employment Growth for the Next 12 Months

CALGARY, ALBERTA--(CCNMatthews - March 8, 2005) - Chief executives' confidence in the Canadian economy recovered slightly this quarter, according to a survey released today by TEC International, the world's largest membership organization of chief executives. This quarter's confidence level of 116.2 is up from last quarter's 115.3, but is still below the confidence level of this time last year.

This increase in confidence in the economy indicates that CEOs are expecting the economy to expand in the upcoming 12 months. Eighty-three percent of CEOs indicated they expect overall economic conditions to be better or remain about the same during this period, compared to only 17 percent who expect the conditions to worsen. Additionally, 80 percent of respondents expect their sales revenue to increase in the upcoming year, further indicating expansion of the economy.

Expected hiring is also up by 9 percent this quarter over last, where only 46 percent of CEOs anticipated adding new staff during the next 12 months. This upward trend is also seen in planned fixed investment expenditures where 50 percent of respondents indicated an increase in expenditures during this period.

The next 12 months also show promise for the Canadian dollar and consumers. Of the CEOs who participated in the survey, 86 percent anticipate that the loonie will either strengthen or maintain its current value and only 41 percent plan to raise prices for their products or services - an 18 percent decrease from Q3 of 2004.

NOTE: All component questions are scored as the percent giving favorable replies minus the percent unfavorable plus 100. The TEC Confidence Index is the sum of the components calculated as a percentage of the level recorded in the Q2 2003 survey.

ABOUT THE CANADIAN TEC CONFIDENCE INDEX

Canadian businesses with annual sales between $1 million and $1 billion represent the most vital component of the nation's economy. This small to mid-size business sector creates 75 percent of all new jobs and generates 50 percent of revenue. The opinions of these business leaders provide a clear snapshot of current economic, market, and industry trends and demonstrate their plans for growth over the next 12 months. These insights provide a leading indicator for employment, capital expenditure, sales, and revenue trends.

The Q1 2005 TEC Confidence Index is a compilation of responses from more than 170 Canadian CEOs of small to mid-sized companies, surveyed February 21 - February 28, 2005. The TEC Confidence Index is the only comprehensive report of their opinions and projections. TEC International, the world's largest membership of chief executives, conducts the TEC Confidence Index quarterly.

ABOUT TEC CANADA

T.E.C. (The Executive Committee) Ltd. is an international organization for chief executives (CEOs), managing directors, business owners and/or bottom line decision makers offering confidential business advisory sessions and professional support. TEC was established in Canada in 1985 and currently has over 600 members in 14 cities.

Members are placed in groups with non-competing peers to gain insights and learn from each other's business experiences. Each group is led in a one-day session by a TEC chair, a highly experienced business professional with specialized mentoring skills. The chair also holds one-to-one sessions with each member of the group to address individual needs. For more information, visit www.tec-canada.com or call 1(800) 661-9209.

ABOUT TEC INTERNATIONAL

TEC International, the world's largest membership of chief executives, helps companies solve business problems, achieve better results and outperform the competition. Since 1957, only TEC members have had access to a comprehensive suite of services that includes peer-group sessions, one-to-one executive coaching, best practices from recognized experts and the collective wisdom of more than 10,000 business leaders. TEC-member companies grow, on average, at a rate 2.5 times faster than they did prior to joining. For more information, visit www.teconline.com.

Response Total Response Percenta. Yes, I have been approached by another company interested in my company 7 4%b. Yes, I have looked to acquire companies 32 19%c. Yes, I am merging with larger company 2 1%d. Yes, I am acquiring another company 14 8%e. Yes, I am expanding strategic partnerships 21 12%f. No, I am not considering merging or acquiring at this time 96 56% Total Respondents 172

15 a. Do your business plans over the next five years include sellingyour current company?

Response Total Response Percenta. Yes, I plan to sell my company within the next five years 46 27%b. No, I don't plan to sell my company within the next five years 126 73% Total Respondents 172

15 b. If yes, have you created / implemented a succession plan?

Response Total Response Percenta. Yes, I have created and implemented a succession plan 17 14%b. Yes, I have created, but not implemented a succession plan 12 10%c. I am currently creating a succession plan 41 34%d. No, I have not created a succession plan 49 41% Total Respondents 119

20. Are you considering diversifying your business by developing newproducts or services in 2005?

Response Total Response Percenta. Yes, I am currently developing new products or services for introduction in 2005 106 62%b. Yes, I am considering developing new products or services for 2005 25 14%c. No, I am not considering developing new products or services in 2005 41 24% Total Respondents 172

21. What effect will globalization have on your business in the next 5years?

Response Total Response Percenta. Yes, I plan to expand into the Chinese market this year 10 6%b. Yes, I plan to expand into the Chinese market within the next 5 years 23 13%c. No, I've already expanded my business into the Chinese market 5 3%d. No, I don't plan to expand into the Chinese market 135 78% Total Respondents 173

NOTE: Two graphs are viewable on the CCNMatthews' website at the following link: